The effectiveness of central bank securities lending operations in smoothing financial market frictions is commonly attributed to the resulting temporary increase in supply of the underlying assets. In this paper, I show evidence for a new channel -- their effectiveness also arises from the information they reveal to market participants about demand and supply conditions for these assets, which usually trade in opaque markets. I use a unique, trade-by-trade dataset of special repo transactions involving Government of Canada bonds to identify that the information revealed by an unexpected lending operation conducted by the Bank of Canada leads to a median drop of 3.1 basis points in the special repo rate of the bond the next day.